BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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commercial banks
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financial institutions
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non-banking finance companies
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All of the above
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Detailed explanation-1: -Primary objective of BFS is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies. The Board is constituted by co-opting four Directors from the Central Board as members for a term of two years and is chaired by the Governor.
Detailed explanation-2: -The Board was constituted in November 1994 as a committee of the Central Board of Directors of the Reserve Bank of India under the Reserve Bank of India (Board for Financial Supervision) Regulations, 1994.
Detailed explanation-3: -While State and district co-operative banks are supervised by the NABARD, certain problem cases are reviewed by the BFS. The Reserve Bank closely monitors these banks to enforce regulatory provisions and takes corrective action in respect of problem banks.
Detailed explanation-4: -The RBI Act 1935 has given the RBI powers of supervision and control over commercial banks.